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Gap Zone

Gap Zone is considered to be ‘closed’ when the market trades back through the unauctioned area and trades the high (for a gap up) or low (for a gap down) of the day prior to the session that first created the gap. A Gap Zone can be closed during the same session in which it was created, the next day, many days later or not at all.

Gap Zone Fill may be perceived as significant as the market has successfully negated the Gap Zone and potentially invalidated the reasons for such a move in the first place. This may be a trigger to force further covering or re-positioning by certain market participants.

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